When the internal pressure in an oil well formation is not great enough to move oil to the surface of the well, a pump is required to move or produce the oil from the well. A downhole pump is one type of pump commonly used to produce the oil and derives its name from the fact that it is actually placed down within the oil well as opposed to a pump having the pumping rod located on the surface above the well. Certain conditions dictate the use of downhole pumps as opposed to surface pumps.
Problems occur when a downhole pump malfunctions or breaks down. Malfunctions or breakdowns result in decreased production, temporary halts in production, inaccuracies in oil volume measurements, maintenance expenses, and expenses required to oversee, repair and check such pumps.